Ministry of Trade, Industry and Energy: "Trade Surplus to Continue in Q4... Semiconductor and Exports to China Show Improvement"

Export-Import Trend Briefing
August Exports Down 8.4%, Imports Down 22.8%, Trade Surplus $87 Billion
Semiconductor Exports Down 21%... "Lowest Decline Rate This Year"

Kim Wanki, Director General of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, stated on the 1st, "The trade surplus trend is expected to continue steadily in the second half of this year."

On the same day, Director Kim announced the 'August Export-Import Trends,' saying, "Exports of Korea's key items such as semiconductors and exports to China are showing signs of improvement."

According to the Ministry of Trade, Industry and Energy, the trade surplus that began in June this year continued for three consecutive months through August. However, the surplus amount increased from $1.146 billion in June to $1.652 billion in July, then decreased to $868 million in August. Director Kim explained, "Key export items such as automobiles and ships, which have continuously driven our exports, are showing strong export performance, and the semiconductor industry is gradually improving," adding, "The 'low in the first half, high in the second half' outlook remains valid from the export perspective."

Kim Wanki, Director General of Trade and Investment at the Ministry of Trade, Industry and Energy, is explaining the 'August Export and Import Trends' at the Government Complex Sejong on the 1st.

Exports in August amounted to $51.87 billion, down 8.4% compared to the previous year. Although the decline in exports, which began in October last year, has continued for 11 months, the rate of decrease has slowed to single digits. By item, exports increased in six categories: automobiles (29%), auto parts (6%), general machinery (8%), ships (35%), displays (4%), and home appliances (12%). Automobile exports achieved the highest August performance ever, marking 14 consecutive months of export growth. On the other hand, exports of semiconductors (-21%), petroleum products (-35%), petrochemicals (-12%), and steel (-11%) decreased compared to the previous year due to factors such as price declines. However, semiconductor exports, Korea's largest export item, increased by 15% from the previous month to $8.6 billion, continuing the improvement trend since the first quarter low and showing the lowest export decline rate this year.

By region, exports to the United States (2%), the European Union (EU, 3%), and the Middle East (7%) turned positive in August, supported by strong performances in automobiles and general machinery. Exports to the U.S. and EU recorded the highest August performance ever due to significant increases in automobile and general machinery exports.

Exports to China (-20%) and ASEAN (-11%) decreased as the decline in semiconductor prices, a major export item, and sluggish exports in these regions led to reduced imports of intermediate goods from Korea. However, exports to Vietnam, which accounts for 51% of ASEAN exports, turned to an increase thanks to strong exports of displays and general machinery. Despite concerns about economic contraction in China, the decline rate eased to 20% from the previous month's -25%, recovering to the $10 billion level again. The trade deficit has been shrinking since March this year.

Director Kim expects exports to turn positive in the fourth quarter of this year. He said, "In addition to automobiles and ships, displays and home appliances are also showing signs of recovery, and this trend is expected to continue next month and through the fourth quarter," adding, "There will be months with positive export growth in the fourth quarter, and this upward trend is expected to continue thereafter."

Last month, the decline in imports was steeper than that of exports. Imports in August decreased by 22.8% due to reduced energy imports (-42%) such as crude oil (-40%), gas (-46%), and coal (-42%) following the drop in oil prices. Besides energy, imports of semiconductors, semiconductor equipment, and steel also continued to decline.

Meanwhile, on the same day, Lee Changyang, Minister of Trade, Industry and Energy, said, "Considering the serious situation where downside risks that could negatively affect exports still exist, the government will also fully support exports," adding, "We will prepare support measures for export promotion at the early part of this month at the whole-of-government level, and will promote diversification of export items and regions, strengthening of export support infrastructure such as trade finance, marketing, and overseas certification, and resolving on-site difficulties faced by export companies."

This content was produced with the assistance of AI translation services.